TF Cornerstone lands $484M refi for Midtown rental tower

The debt refinances a previous $380M mortgage

Mar.March 13, 2019 12:30 PM

606 West 57th Street and TF Cornerstone president Frederick Elghanayan (Credit: Google Maps and TF Cornerstone)

With help from a state housing agency, TF Cornerstone has closed on a large refinancing deal for the Max, its massive luxury rental building in Midtown.

The company closed on $484 million in financing for the 1,028-unit project at 606 West 57th Street, Commercial Observer reported. The debt, provided by the New York State Housing Finance Authority, refinances a $380 million mortgage from 2014 by the same source.

The agency plans to issue $104 million in bonds in the coming weeks, underwritten by Wells Fargo Municipal Capital Strategies, to fund the added leverage, the report said.

The original construction loan was provided by Wells Fargo, M&T Bank and Helaba five years ago. Helaba and M&T were recently repaid and not participating in this financing round, the report said. Wells Fargo also appears to be reducing its role as an investor in the project.

TF Cornerstone’s building, which stretches between 11th and 12th avenues, has 770 units at market rate rent and 258 affordable apartments. The 44-story tower was designed by architectural firm Arquitectonica, and construction was completed last October. Amenities at the building, which is fully leased, include a basketball court, a fitness center, co-working space and a landscaped roof deck.

The cheapest apartments—studios set aside for those who earn no more than 40 percent of the area median income—are available to lottery winners for $613 per month. Meanwhile, a market-rate studio on the building’s fourth floor is going for more than $3,000 per month.

The building is named after Max Elghanayan, the TF Cornerstone scion and vice president who died last year at age 30. [CO] — Meenal Vamburkar

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